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Introduction & Market Context
Huddlestock Fintech (EURONEXT:HUDL) presented its first half 2025 results on August 29, revealing a strategic pivot toward continental European markets while reporting widening losses. The Norway-based fintech company, with a market capitalization of NOK 209 million (approximately $21 million), is reshaping its business model after divesting its Nordic Investment-as-a-Service (IaaS) platform to focus on an asset-light approach for European expansion.
The company’s stock closed at NOK 0.78 on August 28, down 2.51% ahead of the results presentation, reflecting ongoing investor concerns about the company’s financial performance and cash burn rate.
Executive Summary
Huddlestock reported total operating income of NOK 31.4 million for H1 2025, down from NOK 38.0 million in the same period last year. The company’s EBITDA deteriorated to negative NOK 12.4 million compared to negative NOK 9.4 million in H1 2024, while net losses widened significantly to NOK 53.9 million from NOK 35.2 million a year earlier.
The strategic reshaping includes the divestment of the Nordic IaaS platform, which is expected to reduce cash burn and increase financial flexibility. The company has secured its first European customer, GIGA Broker, and plans to onboard end-customers in Q4 2025.
As shown in the following image highlighting Huddlestock’s strategic reshaping for European growth:
"We are reshaping Huddlestock for future growth in Europe with an asset-light approach," said Leif Arnold Thomas, Group CEO. "The strategic divestment of our Nordic IaaS platform will reduce cash burn and provide funding for our European expansion."
Detailed Financial Analysis
The first half of 2025 showed continued financial challenges for Huddlestock. The company’s profit and loss statement reveals declining revenue and increasing losses compared to the previous year.
The following table presents the reported profit and loss figures:
The company’s cash position stood at NOK 10.6 million as of June 30, 2025. Additionally, Huddlestock holds shares in Done.ai valued at approximately NOK 40.9 million (excluding shares designated for distribution to shareholders), which the company intends to use as a source of funding for its European expansion.
The cash flow and market value of Done.ai shares are illustrated in this image:
On a pro-forma basis, adjusting for extraordinary costs associated with the Done.ai transaction and expenses related to discontinued operations, Huddlestock’s Q2 2025 EBITDA was negative NOK 4.1 million, compared to the reported negative NOK 6.3 million. This results in a normalized cash burn of approximately NOK 5.9 million.
Strategic Initiatives
Huddlestock’s key strategic initiative is its expansion into continental Europe using an asset-light approach. The company is leveraging existing technology, know-how, and relationships to build its European Investment-as-a-Service Platform.
The following image illustrates Huddlestock’s business model for European expansion:
The company’s consulting division, Visigon, is expected to be the main revenue driver for the group in the second half of 2025. Visigon generated revenue of NOK 17.6 million in the first half with an EBITDA margin of 9% before group eliminations. Management expects full-year 2025 revenue to be in line with 2024, based on a strong backlog for the second half.
The Visigon revenue development is shown in this chart:
Huddlestock’s organizational structure has been streamlined to 23 full-time employees across four offices in Oslo, Stockholm, Copenhagen, and Munich. The company has also strengthened its leadership team with the appointment of Sabine Merky as Group CFO, starting October 1, 2025.
The following image provides an overview of Huddlestock’s organizational structure and key metrics:
Forward-Looking Statements
Huddlestock projects that its European IaaS Platform will follow a J-curve profitability model, with an initial investment period followed by a harvest period. The company aims to turn the platform cash flow positive during 2026.
This projected profitability curve is illustrated in the following image:
The divestment of the Nordic IaaS Platform is progressing as planned, with the first closing completed on April 24, 2025. The company received 4.57% of shares in Done.ai as part of the transaction, with 20% of these shares (approximately 4.65 million shares) to be distributed to Huddlestock shareholders in Q4 2025.
Looking ahead, Huddlestock expects to onboard the first GIGA Broker end-customers in Q4 2025, with a broad platform launch planned for early 2026. The company also aims to sign a letter of intent with a second customer before the end of 2025.
"We have significantly reduced our cost base and cash burn following the divestment of the Nordic IaaS Platform," noted Øyvind Hovland, Chair of the Board. "Our focus now is on executing our European expansion strategy while strengthening the profitability of our consulting division."
Conclusion
Huddlestock’s H1 2025 results presentation highlights a company in transition, pivoting from its Nordic roots to a broader European strategy while dealing with financial challenges. The success of this strategic reshaping will depend on the company’s ability to onboard new customers to its European IaaS Platform, maintain strong performance in its consulting division, and effectively manage its cash resources during this transition period.
Investors will be watching closely to see if the reduced cost structure and new strategic focus can translate into improved financial performance in the coming quarters, particularly as the company aims to turn its European IaaS Platform cash flow positive in 2026.
Full presentation:
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